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Seasoned independent expert in Capex and cement engineering

RBConsult

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Feasibility study for an integrated greenfield cement plant or grinding station allowing its accreditation by financial institutions.
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  • In coordination with the study of raw materials, the capacity of the plant will be determined, and the technical choices decided.  The feasibility study considers the market situation and its likely future development, in order to propose  realistic financing and estimate the return on investment.

  • The project can additionally include besides the cement plant or a grinding station, a power plant, a living camp base, the access road, the power line connection and a power plant.

  • Services provided:

    • Technical design and choice of process equipment

    • Market research and projection of future developments

    • Financial and return on investment studies of facilities

    • Studies of raw materials in terms of quantity and quality

    • Environmental and social impact assessment

    • Study for an electrical power plant

  • Scope of works:

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1. Feasibility Study for a new kiln line or Grinding Station
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1.1 Role of the Engineer
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  • RB CONSULT, as the project Engineer, will coordinate all the services, manufacturing and works necessary for the realisation of the PROJECT from the feasibility study to the final taking over

  • RB CONSULT will ensure the proper application of the environmental rules in force, particularly regarding air, water, noise, soils and social measures

  • RB CONSULT will apply the rules in force specified by the lenders

  • The methods and investment costs reducing factors will be applied:

    • Optimization of the number of machines and storage capacities

    • Minimisation of the general services

    • Optimal use of local manufacturing

    • On site construction of bulky items

    • Choice of the best performing companies (price, quality, deadlines)

  • RB CONSULT shall appoint a PROJECT manager to coordinate all the activities. He will be the CLIENT's main contact

 
1.2 Definition of the services of the engineer
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  • Phase I:       Feasibility Study

    • Initial SITE visit

    • Market study

    • Technical study

    • Financial study (option)

    •  Validation of preliminary environmental impact study

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2. Definition of services
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2.1 Phase I – feasibility study
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2.1.1 Market study
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The market study will include:

  • Cement market of the country

    • History of consumption

    • Demography

    • Gross domestic product

      • Evolution

      • Forecast

    • Actual situation:

      • Type of cement

      • Proportion bags / bulk

      • Seasonal variations

      • Geographical distribution of consumption

      • Production – Import – Export

      • Taxation system

    • Economic evaluation

      • Gross domestic product

      • Demography

      • Large projects

    • Sales price history

    • Actual and future capacities

    • Actual and future estimation of the market

  • Regional cement market:

    • History and forecast of consumption and capacity

    • History and forecast of import and export

    • Estimated export potential

  • Conclusion:

    • Forecast of the sales in the local market

    • Forecast of the sales for export

 
2.1.2 Technical study
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The objectives of the study are to:

  • Discuss various possibilities for the plant layout

  • Establishment of the process specifications

 
2.1.2.1 Local conditions
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  • Location of the PLANT and access

  • Climatic and seismic conditions

  • Water supply

  • Power supply

  • Fuel supply

  • Environmental protection

 
2.1.2.2 Production characteristics definitions
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  • Raw mix calculations

  • Production capacity and expansion possibilities of the PLANT

  • Definition of the quality of the produced cements

  • Study and choice of manufacturing processes

  • General layout of the PLANT

  • Mass flow diagrams and storage capacities

  • Flowsheets of the workshops (optional)

  • Selection of the fuels and definition of their characteristics

 
2.1.2.3 Process engineering definition
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  • Secondary crushing

  • Raw materials and additives storage

  • Raw milling, raw meal storage and blending

  • Pyro processing: preheater, kiln and cooler

  • Main dedusting

  • Storage and reclaim of clinker

  • Cement milling and storage

  • Bagging, dispatch

  • Fuel preparation (coal, pet coke and AFR)

  • PLANT utilities (industrial water, compressed air)

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2.1.2.4 Electricity and Control-system
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  • Definition of the power and electrical consumption of the PLANT

  • Establishment of single line diagrams and distribution concept (optional)

  • Definition of the principles of the Control-system

  • Definition of the connection of the PLANT to the external electrical network or a power station on SITE

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2.1.2.5 Civil Work
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  • Setting up of the PLANT, of the quarries and their access

  • Circulation plan in the PLANT

  • PLANT platform arrangement (general earthworks, levelling, fencing, water drainage)

 
2.1.2.6 General planning for the realisation of the PROJECT
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  • Design

  • Fabrications - Deliveries

  • Works - Assembly

  • Tests and Taking Over

 
2.1.3 Financial study
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The purpose of the financial study is to estimate the profitability of the PROJECT as well as giving indications on the conditions and parameters that have a decisive impact on this profitability.

The study is mainly focused on a financial simulation of all operations of the PLANT. To be representative of the actual operating conditions, the simulation carried out will cover, in addition to the construction phase which extends over a period of 15 years, a period of 20 years of operation. This makes it possible to consider the relative variations in costs and revenues (construction period, ramp-up period, depreciation).

The analysis, based on the parameters resulting from the technical study, will include:

  • The summary matrix of the PROJECT:

  • Investment budget

  • Production costs (variable and fixed costs)

  • Selling price

  • Financing plan

  • The IRR (Internal Rate of Return: discount rate for which the expense rate is identical to the income rate discounted on the total investment) and the IRR on own funds

  • The break-even point: equilibrium threshold of the production level for which the revenues cover the production costs for a given year

  • Tables of the various financial states covering the 20-year period considered :

  • Cash flow for financial planning (for controlling the synchronization of financial flows)

  • Net income statement (net revenue table)

  • Forecast balance sheets

  • Financial flows chart

  • A sensitivity analysis allowing evaluating the variation in the value of the internal rate of return, based on the various values assigned to the following parameters: total investment, selling price and manufacturing cost

  • Interpretation, comments and recommendations resulting from the figures obtained from the various simulations

The simulations carried out will be established in accordance with the requirements of international financing banks, based on the "COMFAR III Expert" software specifically developed by the United Nations Industrial Development Organization (UNIDO) for industrial feasibility analysis.

2.1.4Validation of preliminary environmental impact study

The validation of the preliminary Environmental Impact Assessment (EIA) will be supported by the following key activities in collaboration with local companies:

  • Collection and revision of information on the PROJECT

  • Establish general field diagnostics and description of the SITE conditions

  • Analysis of existing local conditions, highlighting particularly sensitive aspects

  • Summarize the relevant aspects of the country's environmental regulations and other relevant aspects

  • Examination of the environmental and socio-economic implications of the PROJECT and of the different alternatives to minimize and mitigate or reinforce positive impacts

  • Identification and management of direct and indirect environmental and socio-economic impacts during construction

2.1.4.1Environmental Components Enhanced by the EIA

An initial review of the key concerns identified by the CLIENT will be briefly summarized in a list of VECs (Valued Environmental Components) during the start-up process. It will enable RB CONSULT to focus the report solely on the following relevant and appropriate elements :

  • Physical environment:

  • Soils, local geology and local geomorphology

  • Hydrogeology, surface water and drainage

  • Visual impact, landscape

  • Air quality, dust generation, general emissions and nuisances related to construction and operation, including sound nuisances

  • Waste management, fluid and solid

  • Biological environment:

  • Ecosystem integrity and sensitive terrestrial habitat

  • Removal of vegetation cover and its impacts on biodiversity (flora and fauna)

  • Socio-economic environment:

  • Health and safety issues (public and professional)

  • Land tenure, land use patterns and resources

  • Job opportunities for the local community

  • Traffic status during the works

  • Potential damage to cultural property and archaeological sites resulting from construction activities (if applicable)

 
2.1.5 Reports of the feasibility study
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A report will be prepared for each stage of the feasibility study, namely :

  • Market study

  • Technical study

  • Financial study

  • Validation of preliminary environmental impact study

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Each report mentioned above will be presented by RB CONSULT and discussed with the CLIENT.

RB CONSULT will submit a final summary report of the feasibility study considering the comments of the CLIENT.

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